BMW has announced an ultra-low emission version of the 3-Series saloon that does not compromise on performance and yet could save company car drivers more than £500 a year in tax.
The new 320d EfficientDynamics saloon will go on sale in 2010, priced at the same level as a BMW 320d SE. However, the new version boasts CO2 emissions of 109g/km as well as maximum power of 163bhp.
It means the new model will be taxed at 13 per cent of its P11D price, unlike the 18 per cent of the current 320d SE saloon.
Based on the current price of a 320d SE saloon, at £26,680 on the road, a 40 per cent tax payer would face an annual benefit-in-kind tax charge of £1397 for the new EfficientDynamics model instead of £1935 for the standard 320d SE.
Althought it has slightly less power than the standard 320d, maximum pulling power is 266 lb-ft - more than the 177bhp 320d SE at 258 lb-ft.
The car will sprint from 0-62mph in 8.2 seconds, has a maximum speed of 137mph and achieves 68.9mpg, according to official figures.
Specification will be the same as the current SE, including two-zone air conditioning, rear parking sensors, multi-function steering wheel, but the new model uses 16-inch alloy wheels instead of 17-inch.